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2015 (2) TMI 983 - AT - Income TaxDisallowance u/s 40(a)(i) - non deduction of TDS on payments made to non-resident persons outside India for representation charges - whether the consideration paid by assessee to overseas nonresident agents can be categorized as FTS u/s 9(i)(vii) - Held that:- From the nature of services to be performed by the overseas agents, we are of the view that services rendered by the agents in this case are purely in the nature of advancement of business of the assessee company and cannot be categorized as managerial / technical / consultancy services. Accordingly, the consideration paid by the assessee cannot be classified as fee for technical services (FTS). Representation charges and commission paid by assessee were not liable to be taxed in India and consequently no tax was required to be deducted and therefore disallowance u/s 40(a)(i) was not warranted. - Decided in favour of assessee.
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